Encompass Health to pay $48 million in DOJ settlement


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BIRMINGHAM, Ala. (AP) — The Department of Justice says Encompass Health, one of the nation’s largest providers of inpatient rehabilitation services, has agreed to pay $48 million to resolve allegations of fraudulent Medicare billing.

The Justice Department announced the settlement Friday. The department said the allegations included that inaccurate information was provided to Medicare on some patient diagnoses and that some admissions were not medically necessary.

The allegations were raised in a three whistleblower lawsuit about the Birmingham-based company previously known as HealthSouth.

Assistant Attorney General Jody Hunt said the settlement demonstrates a commitment to making sure providers follow the rules.

Jeff Layne, a lawyer representing Encompass, said the settlement resolves a coding dispute and will enable Encompass to focus on patient care “without the distraction and expense of litigating multiple unfounded lawsuits.”

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